There are a multitude of reasons for this happening. It could be the result of job loss, illness or divorce among others. The worst, however is when your tax preparer is the cause of your troubles.

I keep my eye out for unscrupulous tax preparers who practice in my neck of the woods. The most recent one I came across was in AccountingToday.com news on their tax fraud blotter. According to the article, “Preparer Kushauntia Jones, owner of Mobile Express Tax and Accounting Service, has been sentenced to 20 years in jail after pleading guilty to tax evasion and computer fraud.”

The sad (and funny) thing about the story is that Ms. Jones initially blamed the numerous irregularities on the tax returns her company prepared on the computer! These kinds of people in the business rarely take responsibility for the actions and always blame someone or something else. Kind of like “the dog ate my homework”. Poor excuse.

After digging deeper, the investigators spoke with numerous Mobile clients. The article states that the clients “were unaware of the fraudulent returns submitted on their behalf.” According to the story, it was “also determined that Jones would prepare a written return with the proper information and would present the correct return to the taxpayer for their signature and records.”

This is one way unscrupulous preparers fool their clients. They then e-file a fraudulent return and increase the amount of the refund owed to the taxpayer. This is was Jones did and, she then would “direct the state and federal government to deposit the additional funds into her business account.”

Fortunately there are more honest tax preparers than there are those like Jones. However, you must be careful when you hire someone to prepare and file your taxes.

Getting into IRS trouble is much easier than getting out. If you are in trouble with the IRS due to the criminal behavior of your tax preparer or any other reason, give IRSAllstar a call. You need the attention of a serious, experienced and dedicated attorney.

]]>http://www.irsallstar.com/blog/when-a-good-taxpayer-runs-into-a-naughty-tax-preparer.php/feed0Tax Resolution Attorney John P. Willis Reviews Tax Rules That Won’t Change Under Trumphttp://www.irsallstar.com/news/tax-resolution-attorney-john-p-willis-reviews-tax-rules-that-wont-change-under-trump.php
http://www.irsallstar.com/news/tax-resolution-attorney-john-p-willis-reviews-tax-rules-that-wont-change-under-trump.php#respondFri, 02 Dec 2016 14:55:10 +0000http://www.irsallstar.com/?p=1426Tax resolution attorney John Willis, CEO and founder of IRSALLSTAR, acknowledges there are probably many tax changes that will come with the new Trump Presidency but for now there are a host of rules that won’t change.

Fairhope, AL, December 2, 2016: Tax Attorney John Willis, CEO and founder of IRSALLSTAR.com, recently posted a new article on his website entitled “Basic Tax Rules That are Unlikely to Change Under Trump.” The focus of Mr. Willis’s latest article is a list of rules that will most likely not change when Trump takes office.

Willis writes, “Now that we have a new President who’ll be taking office this January, we can expect some changes to the tax rules coming down the pike.” He adds, “However, there are several areas that are highly unlikely to change.” Willis states, “I’ll focus on several of those areas for now. We have to wait and see what kind of changes Trump is going to make and how those changes will affect the majority of taxpayers.”

One thing the IRS isn’t about to change says Willis is that the “IRS taxes all income from any source, whether in cash or in kind: You win the Lottery, you get taxed; you win at the slot machines or the casino, you get taxed.” He adds, “You get the picture.”

Additionally, Willis says the IRS is not likely to change their stance on foreign bank accounts. He writes, “Foreign accounts are being targeted more intensely than ever and that is not likely to change. While you don’t receive a 1099 form, you still must report the income generated in these accounts.” He further advises, “Don’t be cavalier about this. This IRS has collected $10 billion as a result of offshore compliance.”

Mr. Willis believes strongly in supporting and representing the “underdog” and has devoted his entire professional life to protecting and defending those who need it most. As an attorney, Mr. Willis takes his role as “counselor” seriously. His knowledge, creativity and persistence are valuable assets that provide substantial benefits to his clients. He has represented individuals and businesses across the Gulf Coast for over 15 years and he brings together an abundance of skills and experience that can be of assistance to almost anyone.

ABOUT THE IRSALLSTAR TEAM

The IRSALLSTAR team has developed a winning formula to ensure that each client’s individual needs are specifically met. Upon becoming a client of Mr. Willis’ law firm, that client’s immediate needs are assessed and long-term goals are defined. Experienced professionals on the IRSALLSTAR team then assist each client in developing and implementing a custom-tailored game plan to provide both short-term and long-term relief from his or her serious tax problems. All firm clients are continually coached toward successful tax resolution and final victory over their challenges with the IRS and state taxing authorities.

]]>http://www.irsallstar.com/news/tax-resolution-attorney-john-p-willis-reviews-tax-rules-that-wont-change-under-trump.php/feed0Basic Tax Rules That are Unlikely to Change Under Trumphttp://www.irsallstar.com/articles/basic-tax-rules-that-are-unlikely-to-change-under-trump.php
http://www.irsallstar.com/articles/basic-tax-rules-that-are-unlikely-to-change-under-trump.php#respondTue, 29 Nov 2016 17:35:29 +0000http://www.irsallstar.com/?p=1421Now that we have a new President who’ll be taking office this January, we can expect some changes to the tax rules coming down the pike.

However there are several areas that are highly unlikely to change. I’ll focus on several of those areas for now. We have to wait and see what kind of changes Trump is going to make and how those changes will affect the majority of taxpayers.

Forbes.com has posted a listing of 13 IRS tax rules that won’t change as a result of any of Trump’s Tax Plan. Mostly the things that won’t change are the basics that every taxpayer needs to be aware of. These are rules that have been in place for a very long time. I’m briefly highlighting these rules, however if you want the details you can go to

Everything is Income

No surprise here! The fact that the IRS considers every dollar that comes in as income is not likely to change. As everyone knows, the IRS taxes all income from any source, whether in cash or in kind: You win the Lottery, you get taxed; you win at the slot machines or the casino, you get taxed. You get the picture.

Here’s something that may not be as commonly understood by the majority of taxpayers as the first. The idea is that you always want to accelerate tax deductions and defer tax payments. However, if you have a legal right to money and say “pay me later,” it’s taxed now. But you can condition payment, such as refusing to sell your house or settle a lawsuit unless you are paid next year.

Foreign Bank Accounts

This may not affect a majority of American taxpayers, but those it does affect are in for a harsh awakening. Foreign accounts are being targeted more intensely than ever and that is not likely to change. While you don’t receive a 1099 form, you still must report the income generated in these accounts. Don’t be cavalier about this. This IRS has collected $10 billion as a result of offshore compliance.

Don’t Talk to the IRS

I always advise my clients to stick to this perfectly legal way of dealing with the IRS. If the IRS pays you a visit, either at your home or place of business, you’re best off declining to speak. Simply tell them your lawyer will call. If you do happen to say anything to the IRS, don’t lie.

File Even if You Can’t Pay

File returns even if you can’t pay. This is a no-brainer. There’s no faster way to attract the unwelcome attention of the IRS than not filing your taxes.

Next, you’ll want to pay small tax bills if you get a notice from the IRS, even if they’re wrong. I understand that small is relative, but don’t risk and audit or dispute by fighting over small sums.

Exercise Common Sense

The IRS, while massive and terrifying to many is not as scary as some people think. They are respectful and respond in kind to respectful taxpayers. Reply to every IRS letter, unless it says not to. This is increasingly important in the face of the growing incidence of tax fraud and scams with people posing as IRS representatives making threats.

If the IRS does red flag you for an audit, get professional help and advice. Trying to handle a tax case on your own is inevitably a mistake. Stick to these basics. They’re not about to change anytime soon. I’m sure we’ll be discussing the changes that are sure to come soon enough.

]]>http://www.irsallstar.com/articles/basic-tax-rules-that-are-unlikely-to-change-under-trump.php/feed0Tax Resolution Attorney John P. Willis Reviews Current Tax News Where Scams Still Reignhttp://www.irsallstar.com/news/tax-resolution-attorney-john-p-willis-reviews-current-tax-news-where-scams-still-reign.php
http://www.irsallstar.com/news/tax-resolution-attorney-john-p-willis-reviews-current-tax-news-where-scams-still-reign.php#respondMon, 21 Nov 2016 16:16:03 +0000http://www.irsallstar.com/?p=1402Tax resolution attorney John Willis, CEO and founder of IRSALLSTAR.com takes a look at the lack of current relevant tax news and focuses on the second most important topic which is still tax scammers.

Fairhope, AL, November 21 2016: Tax Attorney John Willis, CEO and founder of IRSALLSTAR.com, recently published a blog on his website entitled “Current Tax News is Mixed Bag of Good, Bad and Ugly.” Mr. Willis acknowledges a lack of helpful tax news in light of the Presidential election. He writes. “If you’ve been hankering for some relevant tax related news that might help you this time of year, it’s been pretty dismal. All you’ve been hearing about is the hoopla surrounding the Presidential election and the constant focus on Trump’s taxes.”

“Unfortunately,” says Willis, “the second most popular tax related news story has to do with tax scams. Despite the news coverage and continuous warnings from the IRS, taxpayers are still falling into the scammers trap.”

Willis admits, “I hate it when I hear how frequently unsuspecting taxpayers are scammed.” He continues adding, “However, I am happy to be able to report that some progress is being made.”

“According to an article posted on www.cnbc.com,” says Willis, “just a few weeks ago, dozens of arrests were made outside of Mumbai, India. A large call center was in business specifically to scam American taxpayers.” He elaborates, “The way it worked was the call center employees sent mass text messages to roughly 10,000 American’s cell phone numbers.”

Mr. Willis believes strongly in supporting and representing the “underdog” and has devoted his entire professional life to protecting and defending those who need it most. As an attorney, Mr. Willis takes his role as “counselor” seriously. His knowledge, creativity and persistence are valuable assets that provide substantial benefits to his clients. He has represented individuals and businesses across the Gulf Coast for over 15 years and he brings together an abundance of skills and experience that can be of assistance to almost anyone.

ABOUT THE IRSALLSTAR TEAM

The IRSALLSTAR team has developed a winning formula to ensure that each client’s individual needs are specifically met. Upon becoming a client of Mr. Willis’ law firm, that client’s immediate needs are assessed and long-term goals are defined. Experienced professionals on the IRSALLSTAR team then assist each client in developing and implementing a custom-tailored game plan to provide both short-term and long-term relief from his or her serious tax problems. All firm clients are continually coached toward successful tax resolution and final victory over their challenges with the IRS and state taxing authorities.

If you’ve been hankering for some relevant tax related news that might help you this time of year, it’s been pretty dismal. All you’ve been hearing about is the hoopla surrounding the Presidential election and the constant focus on Trump’s taxes. Unfortunately, the second most popular tax related news story has to do with tax scams.

Despite the news coverage and continuous warnings from the IRS, taxpayers are still falling into the scammers trap.

I hate it when I hear how frequently unsuspecting taxpayers are scammed. However, I am happy to be able to report that some progress is being made. I like sharing information about any kind of progress that’s made, which often is slim to none.

According to an article posted on www.cnbc.com, just a few weeks ago, dozens of arrests were made outside of Mumbai, India. A large call center was in business specifically to scam American taxpayers. The way it worked was the call center employees sent mass text messages to roughly 10,000 American’s cell phone numbers. If recipients called back, according to the article, “the call center employees would introduce themselves as “Christopher” or “Daniel” and speak with an American accent, impersonating IRS officers. They would then warn the victims that the local police or IRS agents would raid their homes within 30 minutes unless they sent an immediate payment.”

You may think you’d never fall for such a scam, but the article continued to report that, “The call center was certainly getting a return on its investment. The local authorities believe the IRS scam was collecting some $90,000 to $150,000 a day and had been operating for a year.”

So, be alert. Don’t lose focus no matter what’s going on. Keep your senses about you if you get any kind of threatening call from anyone posing as an IRS agent. The IRS typically only contacts tax payers by regular mail.

]]>http://www.irsallstar.com/blog/current-tax-news-is-mixed-bag-of-good-bad-and-ugly.php/feed0Tax Resolution Attorney John P. Willis Urges Do-It-Yourself Tax Preparers to Stophttp://www.irsallstar.com/news/tax-resolution-attorney-john-p-willis-urges-do-it-yourself-tax-preparers-to-stop.php
http://www.irsallstar.com/news/tax-resolution-attorney-john-p-willis-urges-do-it-yourself-tax-preparers-to-stop.php#respondWed, 09 Nov 2016 21:11:51 +0000http://www.irsallstar.com/?p=1395Tax resolution attorney John Willis, CEO and founder of IRSALLSTAR, points to a growing trend of do-it-yourself tax preparation and suggests that those are the taxpayers who are most often in trouble with the IRS.

Fairhope, AL, November 9, 2016: Tax Attorney John Willis, CEO and founder of IRSALLSTAR.com, recently posted a new article on his website entitled “Resist the Urge to Do Your Own Taxes.” Mr. Willis proposes in his latest article that people uneducated in tax law who attempt to do their own taxes are pretty much asking for trouble.

Willis writes, “I always find it amazing when I hear that so many people prepare and file their own tax returns. I mean, honestly, there are so many other things we can tinker with and do ourselves that don’t require ongoing, intensive education and, which can have such a potentially devastating impact on our lives.” He continues adding, “I admit that I get a thrill when I am able to make minor repairs around my house. But when it comes to major repairs or electricity and plumbing, I leave that to the experts.”

Willis contends, “I only suggest preparing your own tax returns if you are a CPA or Enrolled Agent.” He adds a caveat, “If your taxes are simple, meaning you have one job, get one W-2 form and have absolutely no deductions, you could fill out a digital form and submit your returns.” “Otherwise,” says Willis, “you might as well go ahead and invest in some professional dental equipment too!”

Mr. Willis believes strongly in supporting and representing the “underdog” and has devoted his entire professional life to protecting and defending those who need it most. As an attorney, Mr. Willis takes his role as “counselor” seriously. His knowledge, creativity and persistence are valuable assets that provide substantial benefits to his clients. He has represented individuals and businesses across the Gulf Coast for over 15 years and he brings together an abundance of skills and experience that can be of assistance to almost anyone.

ABOUT THE IRSALLSTAR TEAM

The IRSALLSTAR team has developed a winning formula to ensure that each client’s individual needs are specifically met. Upon becoming a client of Mr. Willis’ law firm, that client’s immediate needs are assessed and long-term goals are defined. Experienced professionals on the IRSALLSTAR team then assist each client in developing and implementing a custom-tailored game plan to provide both short-term and long-term relief from his or her serious tax problems. All firm clients are continually coached toward successful tax resolution and final victory over their challenges with the IRS and state taxing authorities.

I always find it amazing when I hear that so many people prepare and file their own tax returns.

I mean, honestly, there are so many other things we can tinker with and do ourselves that don’t require ongoing, intensive education and, which can have such a potentially devastating impact on our lives. I admit that I get a thrill when I am able to make minor repairs around my house. But when it comes to major repairs or electricity and plumbing, I leave that to the experts.

Why Not Be A Do-It-Yourself Dentist?

Now, I’d be willing to go out on a limb here and say that most taxpayers don’t attempt to do the work of their dentist, doctor or hairstylist. I’ve never heard that massive numbers of people have taken to cleaning their own teeth or cutting their own hair. Yet there are some 30 million Americans who prepared and filed their own tax returns from home computers last year. The trend seems to be increasing according to a survey conducted by GoBankingRates.com. That’s 43% of Americans.

According to the survey it was reported that, “A ‘digital tax-prep tool’ is the most popular option among tax filers, with more than a third … of survey respondents saying this is the method they use.” One reason cited is that, “Tax-filing software is a popular option most likely due to the lower costs associated with filing digitally, as well as the ease of using a program to automate calculations and file online.”

I only suggest preparing your own tax returns if you are a CPA or Enrolled Agent.

If your tax returns are simple, meaning you have one job, get one W-2 form and have absolutely no deductions, you could fill out a digital form and submit your own returns. Otherwise, you might as well go ahead and invest in some professional dental equipment too!

Topic Motivated by Hurricane Matthew

I know this is kind of an off-season topic. The reason I bring it up is because many people in Florida, South Carolina and Georgia who have filed for extensions got another extension complements of Hurricane Matthew. In my experience, people who prepare and file their own tax returns are the ones who most often require extensions and are the ones who most often find themselves in IRS trouble. They end up coming to our firm to help them get out from under IRS scrutiny when they’ve made mistakes.

Benefits of Using a Reputable Tax Professional

I’m amazed that so many people do their own tax returns for the simple reason that taxpayers who use a reputable tax professional typically get more money back from the IRS. There are plenty of reasons why working with a pro can result in a higher refund, but it mostly boils down to tax know-how. An experienced tax professional can keep you from making the mistakes that cost millions of taxpayers nearly $1 billion in overpaid taxes every year. The size of your refund check is not even the most compelling reason to work with a professional. Consider the time you save, literally hours and hours are required to research the tax codes and fill out tax forms. And the tax codes can change from year to year. And, biggest of all is that when you work with a reputable tax professional and provide honest information, you steer clear of IRS troubles.

If you have filed for an extension and are attempting to prepare your own tax returns, now’s a good time to reconsider. Give us a call and let us relieve you of the desire to do it yourself!

Fairhope, AL, September 19, 2016: Tax Attorney John Willis, CEO and founder of IRSALLSTAR.com, recently posted a new article on his website entitled “First Time Freshman Parents and 529 Savings Tax Benefits Tips”, in which he offers tips that will help parents stay out of IRS trouble.

On a congratulatory note Willis writes, “You did the smart thing and started a 529 College Savings Plan for your child and now your kid is finally off to college.” He continues adding, “It’s time to start using that money and there’s a slight learning curve toward using it compliantly. The IRS will be watching you closely when you file your taxes in April.”

According to Willis, “Many parents make mistakes that end up costing them more money or putting them in jeopardy with the IRS. I’d like to help you avoid making some rookie mistakes and keep Uncle Sam off your back.”

“For starters,” says Willis, “it’s important to withdraw money from your 529 Saving only for “qualified or eligible education expenses.” He elaborates, “Eligible expenses include tuition, books and supplies, room and board, and special equipment required by the school or class. Computers, tablets and peripherals such as printers and education software are also covered.”

On a cautionary note, Willis states, “Be careful claiming expenses that aren’t covered which include travel expenses to and from campus, campus logo items such as hats, mugs, sweatshirts, and computer games.” He adds, “Do yourself a favor – review and stick to the expenses outlined by the IRS. The IRS allows for educational expenses not expenses that display your kid’s school spirit.”

Mr. Willis believes strongly in supporting and representing the “underdog” and has devoted his entire professional life to protecting and defending those who need it most. As an attorney, Mr. Willis takes his role as “counselor” seriously. His knowledge, creativity and persistence are valuable assets that provide substantial benefits to his clients. He has represented individuals and businesses across the Gulf Coast for over 15 years and he brings together an abundance of skills and experience that can be of assistance to almost anyone.

ABOUT THE IRSALLSTAR TEAM

The IRSALLSTAR team has developed a winning formula to ensure that each client’s individual needs are specifically met. Upon becoming a client of Mr. Willis’ law firm, that client’s immediate needs are assessed and long-term goals are defined. Experienced professionals on the IRSALLSTAR team then assist each client in developing and implementing a custom-tailored game plan to provide both short-term and long-term relief from his or her serious tax problems. All firm clients are continually coached toward successful tax resolution and final victory over their challenges with the IRS and state taxing authorities.

You did the smart thing and started a 529 College Savings Plan for your child and now your kid is finally off to college. It’s time to start using that money and there’s a slight learning curve toward using it compliantly.

The IRS will be watching you closely when you file your taxes in April. Many parents make mistakes that end up costing them more money or putting them in jeopardy with the IRS. I’d like to help you avoid making some rookie mistakes and keep Uncle Sam off your back.

Only Qualified Expenses Are Allowed

For starters, it’s important to withdraw money from your 529 Saving only for “qualified or eligible education expenses”. Eligible expenses include tuition, books and supplies, room and board, and special equipment required by the school or class. Computers, tablets and peripherals such as printers and education software are also covered.

Expenses that Are Not Covered

Be careful claiming expenses that aren’t covered which include travel expenses to and from campus, campus logo items such as hats, mugs, sweatshirts, and computer games. Do yourself a favor – review and stick to the expenses outlined by the IRS. The IRS allows for educational expenses not expenses that display your kid’s school spirit.

Teach Your College Student to Save Receipts

You will be required to show the IRS that withdrawals from your 529 go toward eligible educational expenses. You’ll have to submit documentation in the form of receipts, canceled checks and other forms of payment. Before your child heads off to college have this discussion and make sure he or she understands the importance of documenting all expenses. As you’ll soon find out, if you haven’t already, privacy rules very often don’t allow parents to view bills and expenses from the university. Your child will be making many of the qualified purchases, but you will be responsible for any liability if your withdrawals exceed the qualified expenses or if you cannot substantiate the expenses.

The Most Common Freshman Parent Error: Tuition Payment Mistakes

Remember tax year vs. school year and you may avoid this very common mistake. Qualified expenses must align with withdrawals from your 529-account in the same tax year. If you withdraw 529-plan money in December for tuition the next semester—and don’t pay the actual bill until January (a new tax year)—you may find that you’ve exceeded your withdrawals for this year. In addition you might leave yourself short on money to pay for qualified expenses the next year. If you take money out of your 529 account to pay for next year’s tuition in the current year, make sure it is paid to and logged by the school’s Bursar’s office before the end of the current year.

Hopefully these tips will help you out at tax time and also give you an A+ for doing an equally great job paying for your child’s higher education as you have done saving for it.

]]>http://www.irsallstar.com/articles/first-time-freshman-parents-and-529-savings-tax-benefits-tips.php/feed0Tax Resolution Attorney John P. Willis, Provides Educational Back-to-School Tax Tipshttp://www.irsallstar.com/news/tax-resolution-attorney-john-p-willis-provides-educational-back-to-school-tax-tips.php
http://www.irsallstar.com/news/tax-resolution-attorney-john-p-willis-provides-educational-back-to-school-tax-tips.php#respondMon, 22 Aug 2016 10:16:28 +0000http://www.irsallstar.com/?p=1410Tax resolution attorney John Willis, CEO and founder of IRSALLSTAR, reveals how sending kids off to school or going back to school for the love of learning can result in big savings at tax time.

Fairhope, AL, August 22, 2016:Tax Attorney John Willis, CEO and founder of IRSALLSTAR.com, recently posted a new article on his website entitled “Going Back to School Can Make The Going Easier at Tax Time”, in which he offers a number of tax tips to keep in mind when sending the kids off to school.

While some kids around the country have already headed back to school, most are just getting ready to head back. As Mr. Willis writes, “Whether you’re sending your kid to college, kindergarten or anywhere in between, you might be able to claim a few substantial tax deductions.” He continues adding, “Perhaps you’ve even decided to go back to school to prepare for a new career or simply for the love of continuous learning.”

According to Willis, “Whatever your circumstances, once you review the items below you may discover that you can keep a little more of your hard earned cash instead of having to give it to Uncle Sam next April. Remember to keep track of your expenses for those deductions that are allowed.”

Among the items that are tax deductible, Willis cites, “the childcare component costs of private school tuition for children under 13.” Even though, as he points out, “Neither private school nor parochial school tuition at the primary level is deductible. School uniforms are also not deductible even if they are required.”

According to Willis, “If you have a kid in college you probably already know that expenses incurred moving them to college are not deductible.” “But,” he adds, “if your kid is moving directly from college for that first job, those expenses may be eligible for the moving expenses deduction.”

Mr. Willis believes strongly in supporting and representing the “underdog” and has devoted his entire professional life to protecting and defending those who need it most. As an attorney, Mr. Willis takes his role as “counselor” seriously. His knowledge, creativity and persistence are valuable assets that provide substantial benefits to his clients. He has represented individuals and businesses across the Gulf Coast for over 15 years and he brings together an abundance of skills and experience that can be of assistance to almost anyone.

ABOUT THE IRSALLSTAR TEAM

The IRSALLSTAR team has developed a winning formula to ensure that each client’s individual needs are specifically met. Upon becoming a client of Mr. Willis’ law firm, that client’s immediate needs are assessed and long-term goals are defined. Experienced professionals on the IRSALLSTAR team then assist each client in developing and implementing a custom-tailored game plan to provide both short-term and long-term relief from his or her serious tax problems. All firm clients are continually coached toward successful tax resolution and final victory over their challenges with the IRS and state taxing authorities.